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View Poll Results: Do you typically pay off credit card debt at the end of the month?
Yes - I typically pay off credit card(s) balances at the end of the month. 214 91.06%
No - I often have a balance on my credit card(s) balances and pay interest. 13 5.53%
N/A - I do not use credit cards for transactions or credit. 8 3.40%
Voters: 235. You may not vote on this poll

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Old 01-09-2009, 01:45 PM   #81
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Folks, a decision about whether to use credit cards (and pay them off each month) or avoid them entirely is just like the "rent or buy" debates and the "pay off debts or invest" debates.

Different strokes and all, and I don't think anyone is going to be "persuaded" to reconsider their positions.
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Old 01-09-2009, 02:00 PM   #82
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Originally Posted by ziggy29 View Post
Folks, a decision about whether to use credit cards (and pay them off each month) or avoid them entirely is just like the "rent or buy" debates and the "pay off debts or invest" debates.

Different strokes and all, and I don't think anyone is going to be "persuaded" to reconsider their positions.
Maybe we should start a poll: Have you paid off your mortgage? (yes, no, working on it).
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Old 01-09-2009, 02:17 PM   #83
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Maybe we should start a poll: Have you paid off your mortgage? (yes, no, working on it).
Complete with the "peace of mind" argument versus the "you can't eat your house" argument!

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Old 01-09-2009, 02:24 PM   #84
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Complete with the "peace of mind" argument versus the "you can't eat your house" argument!

On a side note to that, a comment made by someone I knew that worked in F&I at a delaership. In explaining to an irate customer why they couldn't buy a used car even though they recently purchased a house:

"Because the bank knows you can live in your car but you can't move your house"...........
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Old 01-09-2009, 02:35 PM   #85
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"Because the bank knows you can live in your car but you can't move your house"...........
Actually you can, it would just be hard pulling up to a drive-thru...
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Old 01-09-2009, 02:40 PM   #86
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Paying off your mortgage is obviously better..
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Old 01-09-2009, 04:39 PM   #87
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After this thread began, I thought briefly of taking your route and opening a PenFed CC account as was recommended in the spin-off thread. I went there, and the first thing I saw was something about having to have an account. No way am I going to open up a bank account and put perfectly good money in it, for that. Too much complication for me.
This put me off as well, but then as well as the CC PenFed also had great CD rates so I opened an account. I have $50 sitting there and it is well worth it for both the CC and the CD's. The CC cash rebate gets credited every month and for 2008 I had $648 in total.

However, I am fully behind everyone who prefers not to own a CC. I can definitely see the advantages of not having one. Horses for courses...
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Old 01-09-2009, 05:21 PM   #88
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Originally Posted by ziggy29 View Post
Folks, a decision about whether to use credit cards (and pay them off each month) or avoid them ...

Different strokes and all, and I don't think anyone is going to be "persuaded" to reconsider their positions.
Agreed. Just to be clear (in case you were referring to me), I'm certainly not trying to persuade or convince anyone to stop using cash, or to stop using a debit card and get a credit card. They should do whatever works best for them, which may well be different from what seems to work best for me.

However.... one of the reasons I come to this forum is to learn from other's experiences, and in turn to share some of my experiences which may help someone. And I'm trying to understand what these supposed hassles/problems are with credit cards. I have not experienced them. Have I just been lucky? Is there something I need to watch out for that I am unaware of?


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... I love not having to start one of the many threads on this board about how my CC company has raised rates, changed due dates, or whatever ... Not have a CC simplifies my life, and that is worth something, too.
So, can anyone point me to these 'many threads' about credit card problems for those who do not carry a balance? And I'm not talking about a failure to pay on time or anything that is in my control, I think I've got myself covered pretty well there (automatic payments set up and verified). I've saved more than a few thousands of dollars with cash back rewards over the years. I'll give it up if there are some real issues, but I'm not interested in giving up those benefits w/o understanding what these risks are.

So can anyone help me out here - what are the dangers?

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Old 01-09-2009, 05:27 PM   #89
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However.... one of the reasons I come to this forum is to learn from other's experiences, and in turn to share some of my experiences which may help someone.
Exactly! My reason for being also.


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So can anyone help me out here - what are the dangers?
What he said.
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Old 01-09-2009, 05:44 PM   #90
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So can anyone help me out here - what are the dangers?

TIA -ERD50
I see no mention of 'dangers' prior to your use of the word.

What I do see is a couple of posters who don't use credit cards as they apparently perceive the convenience and/or savings doesn't offset the hassle of paying the bill or dealing with the CC company. While I don't happen to agree with them, I don't see them claim using a CC wisely as being dangerous.

Or are you attempting to start a do/don't pay-off-the-mortgage-early-and-buy-an-immediate-annuity-and-buy-only-index-funds discussion?
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Old 01-09-2009, 05:54 PM   #91
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So can anyone help me out here - what are the dangers?
Like you, I charge everything I can to 2 CC's, pay them off every month and have automatic payments set up to avoid missing a deadline and incurring late fees etc. I don't think you and I will have any issues.

The biggest issue I have personally had was over 10 years ago when I got my daughter a credit card for going to college with a $500 limit - this was in the days before Visa/MC debit cards - it just seemed much easier for us to manage than her having cash. (It was also in the days before easy and no-fee online banking and easy money transfers).

It worked great for the first year until she accidentally went over the limit which in fact was not a limit, but a threshold at which we got hammered with additional fees.

PS

Both DD and husband now use use debit Visa cards. DS also uses debit card only
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Old 01-09-2009, 06:41 PM   #92
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I'm curious about those that don't have a credit card, mortgage, or car loan. What do you do to maintain a FICO score? Or is this not a concern, because your net worth is such, that credit reports are irrelevant?
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Old 01-09-2009, 07:24 PM   #93
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I don't have a mortgage, anymore. Paid off! (wait, that's a different thread...)
I don't have a car.
I do have a credit card that gets very little use.

Why should I arrange my life to please some rating agency somewhere? It is enough of a PITA pleasing my b*sses at work.

(In a way, it is like answering the phone at home. If I'm doing something else, too bad. The phone serves me. I do not serve the phone.)

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Old 01-09-2009, 08:49 PM   #94
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I'm curious about those that don't have a credit card, mortgage, or car loan. What do you do to maintain a FICO score? Or is this not a concern, because your net worth is such, that credit reports are irrelevant?
I don't know what I do, other than pay my bills by automatic bank draft, so they are always on time. My credit scores were in the lower 800's the last time I checked, though I am not quite sure why. I don't have any debt, and no intention to acquire any, but I guess a low FICO is still nice to have in order to get lower insurance premiums.
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Old 01-09-2009, 09:25 PM   #95
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I understand the attraction of not having a credit card - went for many years without - shoot it griped me to have a checking account and not earn interest on my money - for the few bills i couldn't pay in cash money orders were more cost effective. I still enjoy paying cash for some stuff - but i dislike coins inna pocket, so change is an issue. I like the way cash doesn't leave a trail for marketers to view to check my spending habits. I like having a nice chunk of cash around just in case - frankly, i like the privacy cash gives - one of the reasons i never got a tattoo - should i take to a life of crime or secret agentry i didn't want to leave a big trail or have identifying marks. The attraction of the debit card vs. credit card escapes me, but that's ok - we all have our little pecadillos ('specially the texans, who first crossed the peccary and the armadillo).
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Old 01-09-2009, 09:39 PM   #96
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Maybe we should start a poll: Have you paid off your mortgage? (yes, no, working on it).
Anarchist.
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Old 01-09-2009, 09:40 PM   #97
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I can't vote in this poll.

I am currently carrying balances on 10 cards, but I am also not paying interest on any of them. They are all 0% teaser offers that I plan to pay off when the balances come due (generally in March through May of next year).

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Old 01-09-2009, 09:42 PM   #98
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I don't have a mortgage, anymore. Paid off! (wait, that's a different thread...)
I don't have a car.
I do have a credit card that gets very little use.

Why should I arrange my life to please some rating agency somewhere? It is enough of a PITA pleasing my b*sses at work.

(In a way, it is like answering the phone at home. If I'm doing something else, too bad. The phone serves me. I do not serve the phone.)

ta,
mews
But you have insurance on your house and FICO is used to the insurance agencies to determine your rate. So the better the FICO, the more money you save.
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Old 01-09-2009, 09:55 PM   #99
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bssc, I own a coop apartment in NYC. My annual insurance is $289.00 / yr. Doing a major dance to save $15.00 or so - not cost-efficient for me.

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Old 01-09-2009, 10:01 PM   #100
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I see no mention of 'dangers' prior to your use of the word.
I was just asking the question - you are right, I guess no one in this thread described it as a 'danger' - but I'm trying to figure out what is in these 'many threads' that were alluded to. With a quick search I only came up with issues where people caused some of their own problems (late or under payment), or having unused cards cancelled.


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Or are you attempting to start a do/don't pay-off-the-mortgage-early-and-buy-an-immediate-annuity-and-buy-only-index-funds discussion?
Nah, just like I said - I'm trying to learn.

I'm getting hundreds of dollars a year in benefits. I fail to see where the "hassle of paying the bill or dealing with the CC company" (I'll avoid that trap by quoting your words, OK?) comes into play when I have auto-payment set up. I have not experienced any hassles. My credit limits are about 4X my biggest bills, and over 10x my typical bills.

Now (this is where the LEARNING part comes in): just because I have not experienced the problems, does not mean they are not out there. Maybe I am just unaware. So, in good faith, I am asking - what are these supposed 'issues' (safe word?).

Let me try again ( with kid gloves this time ) ...


So can anyone help me out here - what are the dangers potential issues for a credit card user who has set up auto payments to avoid late fees or underpayment?

Once I understand what these possible potential issues are, I can use that info to make a reasoned decision for *myself* (no one else) whether the benefits I get are worth these potential issues. Others could evaluate their personal situation, based on how that info might relate to them.


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